SOUTH JERSEY PORT CORPORATION 2015 Annual Report

SOUTHERN NEW JERSEY’S INTERNATIONAL SEAPORT SOUTH JERSEY PORT CORPORATION

The core mission of the South Jersey Port Corporation is to maximize regional deep-sea maritime assets to foster economic growth and job creation in southern New Jersey. A quasi-state agency of the State of New Jersey, the SJPC was created to build and operate marine terminals in its southern seven counties. The SJPC owns and operates two deepwater marine terminals in the City of Camden on the Delaware River and is constructing a deepwater omniport on 190 acres of land in Paulsboro. In Salem City, along the Salem River, the Corporation owns facilities that support barges and shallow draft ships. A vital link in the global supply chain, the SJPC is the grantee of the federal Foreign Trade Zone #142. Annual Report 2015 - p1 Contents

Introduction 02 Transmittal Letter 04

Board of Directors 06 Sounds of the Future 08 Our Mission 10 Paulsboro Marine Terminal 12 Reconfi guring Broadway Terminal 14 2015 Highlights 16 Our International Terminals 18 Administrative Offi cers & Staff 20 p2 - SOUTH JERSEY PORT CORPORATION

2015 SJPC OVERVIEW

Another successful business year has ended for the marine terminals of the South Jersey Port Corporation as cargo tonnage, revenues and job-creation continued in 2015 on a steady, multi-year trajectory of positive growth. Overall annual cargo tonnage increased by 12% from 2,264,747 short tons to 2,525,563.

A rebound in wood product and gypsum imports, combined with the arrival of sand bulk cargo, are the main factors behind the continued growth. The Port processed 160,255 short tons of wood products, 48% higher than 2014, 116,376 short tons of gypsum and 245,865 of sand. AtAt aa Glance:Glance: Steel imports destined for 2015 Highlights midwest and Canadian 2015 Highlights manufacturers and scrap metal exports remain at historically high numbers. Steel 12.0% tonnage was 832,154 tons and scrap metal was 525,221 Cargo tonnage compared to 522,381 in 2014. Increasingly, the SJPC has become the winter default port for steel shippers when 29.0% the Saint Lawrence Seaway closes during the winter. Ship arrivals The Port’s terminals are also becoming a year round business for steel. Cement 15.0% and Grancem® tonnage were 355,184 and 105,162 Ship days respectively, slightly less than the previous year.

The SJPC’s marine terminals handled 201 ships in 2015, 29% more than the 157 ships that arrived in 2014. The number of ship days (i.e. the number of days a ship is loading and unloading at its terminals) grew by 15% from 462 ship days to 530.

SJPC formed the partnerships and built the infrastructure necessary for sustained growth in cargo and jobs. SJPC continues to be a driving force behind the growth of the regional economy and the renaissance of Camden. Annual Report 2015 - p3 a multi-year trajectory of positive growth p4 - SOUTH JERSEY PORT CORPORATION

Board Chairman Richard Alaimo.

FOUR-YEAR CARGO TOTALS Steady growth 12.0% Cargo tonnage continued on a steady, multi-year trajectory of positive growth in 2015. 12 13 14 15 Annual Report 2015 - p5

LETTER TO THE GOVERNOR

To the Governor, Lt. Governor and Legislators of New Jersey business and management decisions The building of PMT made the made by our board of directors and development of the Holtec International On behalf of the Board of Directors of management team; and the skills and campus at our Broadway Terminal in the South Jersey Port Corporation, it is fl exibility of our dedicated employees. Camden possible. my pleasure to report the South Jersey Port Corporation in 2015 continued to With courage and vision, especially Funded through the “New Jersey expand on its steady growth of business. during the depths of the worst global Economic Opportunity Act” and “Grow economic implosion since the 1930s, New Jersey” economic incentives, the Revenues, cargo tonnage and job- the State of New Jersey—through its $260 million industrial, engineering creation continue on a steady, multi-year, Governor and State Legislature—made and research campus, by 2021, will trajectory of positive growth. continued investments not only in employ 5,000 scientists, engineers and current needs but, more critically, for the fabricators of sophisticated components Key to our success has been the SJPC’s future. for the growing global nuclear energy ability, in a multi-dimensional business market. environment, to weather the negative The new Paulsboro Marine Terminal eff ects of the past decade’s economy by (PMT) in Paulsboro, New Jersey—a Economic growth. Job creation. adapting to ever-changing market forces commitment made just prior to, Commitment to the now and to the of the maritime business environment— and sustained through, the 2008 future. These are the 2015 returns on globally, regionally and locally. While recession—is now coming to life in 2016 investment. focused on the now, we must always to accommodate our business growth keep an eye on the horizon. in a partnership with Holt Logistics our operator-leasee of the PMT. Promising Sincerely, The 2015 Annual Report of the SJPC is a to create 850 jobs at PMT, Holt Logistics, testament to your collective leadership landed its fi rst major PMT customer, and investment on behalf of the people NLMK-USA, Russia’s largest steel of New Jersey; in the job-creating producer. The NLMK will create 150 jobs. Richard A. A Alaimo Alaimo mission of the SJPC; the prudent Chairman p6 - SOUTH JERSEY PORT CORPORATION

ABOUT THE BOARD OF DIRECTORS On January 23, 2008, legislation increased the South Jersey Port Corporation Board from seven to eleven Directors. This action also added the State Treasurer, ex offi cio, or the Treasurer’s designated representative who would be a voting member of the Corporation, to the Board. The ten public members must each reside in the Port District.

SJPC Port District is comprised of seven counties: Mercer, Burlington, Camden, Gloucester, Salem, Cape May and Cum- berland. There are three subdistricts: Subdistrict 1: Mercer and Burlington Counties: Three members Subdistrict 2: Camden and Gloucester Counties: Five members Subdistrict 3: Salem, Cape May and Cumberland Counties: Two members Annual Report 2015 - p7 2015 Board of Directors Guiding the Port through a challenging economy into a growth market

Chairman Director DirectorDiireectoror DirectorDiDireectoro Richard A. Alaimo Chad M. Bruner RobertRoobert AA.. DeDDeAngelo,AnA ggeloo, SrSr.. JonathanJoonanathhan S.S. GershenGeersshheen Burlington County Gloucester County CityCiC ty ooff PPaPaulsboroulsborro MercerMeercr ere CountyCountn y

DiDirectorrectorr DiDDirectorreecttorr DirectorDireectorr Director JoJJosephses ph AA.. MMaMaressa,rreessa,a JJr.r. ErEricicc E.E. MMaMartinsarttiins CrCraigraig F. RRemingtonemmingtonn Sheila F. Roberts CamdenCaamden CountyCouunty MeMercerercerr CountyCouuntn y CamdenCaamdden CountyCouunnty City of Camden

DirectorDirector DiDirectorirreecttor Actingi ReRev.ev.v. Carl. E. StStylesyles ChChristopherriisttopophheer ChianeseChianeesee State Treasurer CuCumberlandumberland County TrTreasurer’seaasureerr’s DeDesigneeesignneee Ford M. Scudder p8 - SOUTH JERSEY PORT CORPORATION

SOUNDS OF THE FUTURE In rhythmic pounding, steel encapsulated concrete piles are driven deep into the South Jersey soil along the fabled Delaware River.

THE SOUNDS OF THE FUTURE ARE IN THE NOW The sounds of the future are in the now. In rhythmic pounding, steel encapsulated concrete piles are being drivenr deep into southern New Jersey’s soil along the Delawaree River.

In rain, in blustery wind, under a harsh sun, from dawnn tto dusk, thousands of piles are driven into the soil of Paulsboro,uls New Jersey, where a new omniport —the fi rst new poport in nearly 75 years—is coming to life. Eleven miles up rivriver, another 4,000 piles are hammered into the soil offa an old shipyard in Camden. In that shipyard workers builtuil the huge fl eet of warships that won World War II. It then evolvedev into a global marine terminal and now is being redefidefi ned as a home for modern industry.

Hard hats are everywhere. Large earthmovershm sculpt the Paulsboro landscape into fi elds whereere a new crop of wharves, roads, and buildings will bud. In CamCamden, ironworkers, in a death-defying ballet, shape steesteel beams into the skeleton of Holtec International’s campusmpus where scientists and engineers will contribute to the rebirebirth of the global nuclear energy industry.

It’s the sound of the now morphing into tomorrow, an exclamationxclam point on 2015 for the South Jersey Port Corporation in the steady drumbeat of another successful year. Adapting to ever-changing—and challenging—market forces of the maritime business environment, the South Jersey Both photos: Pilings being driven for the wharf at the Port Corporation has weathered the global recession and, in SJPC’s new omniport in Paulsboro. 2015, continued its steady growth of business. Annual Report 2015 - p9

Record breaking year Continuing robust imports Investing in the future These are the dividends of a multi-year, A rebound in scrap metal exports and Through prudent management, visionary two-front business strategy crafted and wood product, gypsum, and sand imports planning and courageous investments, adopted by the Board of Directors of the were the main contributors to the SJPC’s the SJPC in 2015, harvested the dividends SJPC and by stakeholders, the people record-breaking year. Wood product of a solid and productive business of today of New Jersey through the Governor imports increased by 48% to 160,255 while marching on the well-engineered and State Legislature. It was a strategy short tons and scrap metal exports highway to a prosperous future. requiring a clear-eyed focus on current increased by 1% to 525,221 short tons. business operations, opportunities, The Port also moved 245,865 short tons of Decisions and investments made sustainability and growth while sand and 116,376 short tons of gypsum. during the worse global decline in planning for and investing in the future. nearly a century have given birth to the It’s a strategy rooted in a basic—and The multi-year growth pattern in steel SJPC’s future at the Paulsboro Marine undeniable—logic: you need a solid refl ects a growing customer confi dence in Terminal and in Camden in the creation vehicle to drive to tomorrow and when the SJPC and its stevedoring partners to of thousands of new, family sustaining you get there you need the means to carefully handle these specialty cargoes jobs across a broad spectrum of skills thrive and strive for the future over the off the ships and on to the end-user from logistics workers to engineers and next horizon. effi ciently, expeditiously and safely. scientists; from stevedores, truck drivers, warehousemen to the designers and With continued robust imports of high The SJPC’s deep-water ports and highly fabricators in a renaissance of the nuclear quality steel for American and Canadian effi cient terminals with dockside rail are power industry. manufacturers, the South Jersey Port within a day’s truck haul of the northeast Corporation’s Camden marine terminals and midwestern industrial base of the continued to break cargo tonnage records United States and eastern Canada. A in 2015. Overall cargo tonnage was roll of steel, off -loaded in Camden, can 2,264,747, a 12% increase over 2014. The arrive at plants throughout the Midwest, largest share was derived from 832,154 eastern Canada and from Montreal to the short tons of imported steel. Carolinas in as little as a half a day. p10 - SOUTH JERSEY PORT CORPORATION

THE SOUNDS OF THE FUTURE ARE IN THE NOW Our Mission The core mission and the foundation for the SJPC To work in partnership is to create and sustain economic growth and jobs within southern New Jersey by leveraging the region’s with the State and excellent maritime access: deepwater, sheltered ports in the epicenter of a huge and rich North American private entities market and the highway and road networks to the to complement their industrial heartland of United States and Canada. functions and The State of New Jersey created the SJPC in 1968 as capabilities. a quasi-state agency, operating as a corporation with the backing of the full faith and credit of the State of New Jersey, with jurisdiction over port development in the State’s seven southern counties: Burlington, Camden, Gloucester, Salem, Cumberland, Mercer and Cape May.

SJPC’S PORT DISTRICT ‘S SEVEN COUNTIES

MERCER BURLINGTON CAMDEN GLOUCESTER SALEM CUMBERLAND CAPE MAY Annual Report 2015 - p11

Our MIssion The South Jersey Port Corporation is Q Foster the State of New Jersey in Both terminals have dockside rail, dedicated to upholding the following becoming a vital link within the high speed, high capacity cranes and principles and goals: world’s markets. in excess of two million square feet Q Work in partnership with both State Q Deliver top quality customer of warehousing and transit sheds. and private entities to complement satisfaction and overall experience for Through rail and direct connection to their functions and capabilities, as each unique client. the nation’s interstate highway system, well as enhance our regions. the SJPC’s terminals are within a day’s Q Provide major regional services Our Faclities haul to North America’s most densely and facilities for the handling of With four international seaports along industrialized zone and more than 100 bulk, break-bulk, dry bulk and the Delaware River, the Port Corporation million consumers. containerized cargoes. off ers extraordinary access to the entire Q Retain and expand the existing eastern seabord. In Salem City, 42 miles south of industrial, manufacturing, distribution Camden, where the shallow draft and related employment bases within The SJPC owns and operates two deep- Salem River fl ows into the Delaware the Port District and South Jersey water marine terminals in the City of Bay, the SJPC owns and operates the regions. Camden ,both within the shadows of Salem Marine Terminal. Modest in Q Respect the sensitivity of the public’s two major bridges into Philadelphia, comparison to the Camden terminals needs and concerns, as well as serve Pennsylvania: Joseph A. Balzano Jr. Marine and limited by the shallowness of the their interests by improving public Terminal at the Ben Franklin Bridge; and Salem River, the Salem Marine Terminal awareness. the Broadway Terminal at Camden’s is used primarily for sand and gravel Q Operate our facilities in a professional southern border at the Walt Whitman shipment from southern New Jersey. and safe manner. Bridge. p12 -SOUTH JERSEY PORT CORPORATION Strategic location Omniport at Paulsboro By 2004, with both of its two marine The site is being transformed by the terminals in Camden at full capacity, and SJPC in partnership with the Gloucester with no breathing room to grow in a city County Improvement Authority (GCIA) on the cusp of a rejuvenating residential into the Paulsboro Marine Terminal. Huge and commercial market, the SJPC looked earthmovers have sculpted the landscape for land on the Delaware River that and 300,000 cu/feet of dredge spoils have possessed deep water, effi cient highway raised the deck by 10 feet above the fl ood and rail access and room to expand. plain. The piles have been driven for the marginal piers and the trestle access to the The SJPC found it in Paulsboro, eleven wharves. miles south of Camden, where local needs and those of the SJPC were congruent. With the GCIA as its construction Paulsboro offi cials had a shuttered management team, the SJPC has invested petro-chemical tank farm they wanted nearly $200 million in the initial phase of the to covert into a job-creating, tax-revenue project to convert the Paulsboro site into generating asset. The SJPC was looking a state of the art omniport. Operations are for a place along the Delaware River to anticipated to begin in 2016 as planning grow its marine terminal business and proceeds toward full build out. create jobs. In 2005, the SJPC bought the 190-acre parcel that had evolved and As a blank slate, the Paulsboro Marine devolved over two and a half centuries Terminal (PMT) has the fl exibility to handle a from Revolutionary fort to a port, to an wide variety of cargoes in an ever-changing active and later derelict petro-chemical global market. Flexibility to the needs of tank farm. tenants and customers is paramount to the success of both the SJPC and the Paulsboro Only 78 miles from where the Atlantic Marine Terminal especially in these Ocean marries the Delaware Bay, the tide formative years. of the Delaware River fl ows along the banks of Paulsboro with a natural scouring Strategically located, the PMT has excellent that maintains a current 40 foot depth access to the nation’s interstate highway which will be dredged to 45 feet. Plans call system and dockside rail to the nation’s rail for an eventual marginal wharf in excess of network. The State built an $18 million “port- 2,200 feet to accommodate four ships and only” access road and bridge to the terminal. a babarge berth on the property’s northern Funded by grants from the State of New borderder wherewhe the Mantua Creek fl ows into Jersey, the access road and bridge better the river. insulate the residential communities in Paulsboro from truck traffi c while adding an additional layer of security to the terminal. The South Jersey Port Corporation is also investing heavily both in dockside rail where cargoes can be loaded and unloaded, to and from ships, at water’s edge. Annual Report 2015 - p13

Paulsboro Marine Terminal, a new omniport, is rising from an abandoned tank farm.

Progress at Paulsboro: These aerial photographs show the progress on wharf construction during 2015, clockwise from top left, are shown January through April, July and November.

Leveraging $110 million By also leveraging $110 million in regional Holt Logistics, which is investing $10 infrastructure investments, the SJPC was million in the Paulsboro terminal, is moving able to invest millions of dollars from aggressively to develop and market the federal grants to upgrade freight rail PMT even before construction is complete. lines throughout southern New Jersey, Holt signed a deal with NLMK-USA, a as well as in the Delair Bridge that spans subsidiary of Russia’s largest steel company, the Delaware River, connecting the SJPC making Paulsboro its main port to the marine terminals to the rich markets and United States. The arrangement will result industrial plants of the United States and in 150 immediate jobs of an anticipated Canada. 850 Holt-created jobs, as a result of the operations at Paulsboro. p14 - SOUTH JERSEY PORT CORPORATION

RECONFIGURING BROADWAY TERMINAL The South Jersey Port Corporation is a driving force for the renaissance of Camden.

July 2015 Groundbreaking at Broadway HOLTEC International The growth opportunities at Paulsboro opened the door in Camden for the largest single private investment in the city’s history: Holtec International. By effi ciently re-confi guring its operations at the Broadway Marine Terminal, the SJPC was able to attract Holtec International to build its $260 million campus at the Broadway Marine Terminal.

Holtec International is expert in the design and manufacturing of parts for nuclear reactors as well as casks for the storage of spent nuclear fuel. Ironically, the nuclear-free zone Holtec campus was once the birthplace of America’s nuclear naval fl eet before consolidation of the nation’s shipbuilding industry made the New York Shipbuilding Corporation - the precursor of the Broadway Marine Terminal - obsolete.

Four thousand concrete-fi lled-steel pilings were driven deep into the ground throughout the site to support the construction of Holtec’s heavy manufacturing facilities. Construction of 600,000 sq/ft of research, design, and manufacturing facilities in support of the world’s nuclear – and non-nuclear – power industry is moving at a rapid pace.

Holtec International anticipates that by 2021 some 5,000 Above: Holtec’s Dr. Kris Singh and NJ Lt. Gov. Kim Guadagno scientists, engineers, designers, fabricators and support staff greet Camden Mayor Dana Redd and other guests at the will be employed at the campus a historic renaissance of one ground-breaking ceremony. Below: Holtec’s construction gate of America’s poorest cities. at Broadway Annual Report 2015 - p15

Reconfi guring its footprint To accommodate the Holtec project, the SJPC reconfi gured its footprint at Broadway Terminal while also protecting its most vital asset: unimpeded access to its deepwater berths along the Delaware River.

As the Holtec campus rises at the terminal, Broadway Marine Terminal continues to thrive for the SJPC and its tenants. Holt Logistics and Delaware River Stevedores continue to load and unload ships to trucks and trains moving the water-borne cargoes along a global conveyer to—and from—the industrial heartland of North America. Joseph Oat Company, whose history as the fabricator of metal vessels dates back to the founding of the United States, continues to design and fabricate specialty, high- quality steel vessels for the nuclear and petro-chemical industry.

To help attract Holtec, Holt Logistics agreed to reduce slightly its footprint at Broadway Marine Terminal and surrender some land for the Holtec campus. In a partnership with the SJPC, Holt Logistics became the lease-operator of the emerging Paulsboro Marine Terminal bringing to bear its marketing and operational prowess.

The sounds of construction today reverberate through the driving of piles that are the foundation of tomorrow.

Pile driving one of the 4,000 pilings at Broadway p16 -SOUTH JERSEY PORT CORPORATION

HIGHLIGHTS OF 2015 The South Jersey Port Corporation is an economic engine for Southern New Jersey, with its developing omniport in Paulsboro, its busy wharves in Camden, and a growing number of Foreign Trade Zone sites and subzones throughout the port district.

SECURITY IS PARAMOUNT The marine terminals of the South regulations requirements, receivedd Jersey Port Corporation are categorized the Coast Guard’s approval in Octoberob as key components of the nation’s 2015. The plan incorporated severalra critical infrastructure and their security signifi cant security enhancements,ts is paramount to the SJPC’s and the as well as the reconfi guration of ththe federal and state agencies charged with Broadway Terminal to allow thee HHoltec protecting the homeland. development.

Security is an ongoing, ever vigilant, To further extend the SJPC’ss capabilitiesc always questioning, constantly to assess and improve the sesecurity adapting and evolving process with at its terminals, staff acceptedept a U.S. some components purposely visible, Department of Homelandand Security others purposely opaque or invisible. opportunity to have a CComputer Based Assessment Tool (CBAT)BA created for Key to the port’s security is the Facility the Balzano Marinene Terminal and the Security Plan or FSP, which is a template Broadway Marinerine Terminal. The CBAT created by the federal government, is a data collectionllec and presentation to rigorously identify key assets and medium dedesigned to support critical address vulnerabilities and responses to infrastructurestru security, special event incidents. planning,lann and incident response ooperations. In 2015 the SJPC’s Facility Security Offi cer, developed and delivered the SJPC’s staff worked with a team from Five-Year Facility Security Planlan fofor the the U.S. Department of Homeland Balzano and Broadway TerTerminals to the Security to perform all the fi eldwork U.S. Coast Guard, Sector Delaware Bay. during 2015. The completed CBAT for each terminal will be delivered in 2016. The FSP, meeting all Maritime Transportation Security Act-33CFR105 Annual Report 2015 -p17

NEW WEBSITE FOR SJPC ETHICS AUDIT EXCELLENCE RAIL IMPROVEMENTS A new interactive website was The State of New Jersey’s Uniform The SJPC Board awarded a contract to announced by the South Jersey Port Code of Ethics provides the SJPC’s Railroad Construction of South Jersey Corporation in July 2015. The web employees and Board members with for the Industrial Sidetrack Project at address remains the same: guidance for conduct concerning the Broadway Terminal. The project will www.southjerseyport.com. The the state Confl icts Law. All executive relocate the existing Conrail sidetrack site off ers complete records of branch agencies must be in service that entered the marine offi cial actions taken by the Board of substantial compliance with ethics terminal from the east, across the Directors at offi cial meetings as well requirements and random reviews Broadway roadway to the north end of as on-line listings for job openings ensure compliance in meeting the terminal. The new track service was and construction bids. In addition, ethics reporting, training and other necessary to make way for the Holtec the website provides archived copies requirements. The review also Technology and Manufacturing Center of the corporation’s annual reports, determines whether State agencies development. newsletters, magazines, and news have implemented procedures and releases for the past several years. practices that will prevent and detect The new rail service is connected to It also contains contact information ethics violations. Conrail’s Bulson Street Rail Yard north for the corporation’s employees and of Broadway Terminal. The sidetrack directors. In 2015, the State Ethics Commission begins at a new turnout just north of conducted an ethics compliance the Jeff erson Street right of way and review of the SJPC and issued an traverses the Bulson Street Yard in a FTZ SUBZONE APPROVED Ethics Compliance Audit letter, dated southeasterly direction until it enters The SJPC Board applied on behalf of April 13, 2015 which concluded the the Broadway Terminal. The new track Nine West Holdings, Inc., for subzone South Jersey Port Corporation and then continues in a southerly direction status under federal Foreign Trade Zone the agency’s Ethics Liaison Offi cer within the port for an additional 683 #142. On December 23, 2015, the FTZ to be in substantial compliance with feet where it ties into the existing Board approved the new Subzone142D. reporting, documentation and other sidetrack. Continuing south along the The subzone is for distribution and requirements of the New Jersey existing track for approximately 1,000 warehouse facilities in West Deptford. Confl icts of Interest Law, regulations, feet, the new sidetrack continues for The company will be importing men’s and Executive Orders. No defi ciencies approximately 780 feet within the new and women’s apparel, footwear, jewelry, were identifi ed in the SJPC ethics Holtec manufacturing building. The and accessories. No manufacturing will program. project was funded through a NJDOT occur within the FTZ site. Freight Rail Assistance grant. p18 - SOUTH JERSEY PORT CORPORATION Moving International Trade

PAULSBORO MARINE TERMINAL JOSEPHJOSEPH A.A. BALZANOBALZANO MARINE TERMINAL Location: Delaware River, Paulsboro, Location: Joseph A. Balzano Boulevard, New Jersey Camden, New Jersey Area: 190 Acres Specialized cargoes: Wood products, steel products, Berths: Phase I will be 800 LF cocoa beans, salt, containers, (244 m) and recycled metals Depth at MLW: 40 feet (12.2 m) Other cargoes: Project and dry bulk cargoes Truck gates: Multiple Terminal area: 122 acres (49.4 ha.) Highway Access: Direct one-mile, limited Berths: 4 berths, totalling 2,655 LF (701 access roadway to meters) Interstate 295 Depth at MLW: 35 ft. (10.7 m.) to 40 ft. (12.2 m.) Rail connections: CSX, NS, and CP Rail Storage capacity: 21 dry warehouses comprising Systems with Integrated 1,168,441 SF (108,591 sq. m.) On-Dock Rail Heavy lift cranes: One multi-purpose Infrastructure bulk/container crane, 95 tons Terminal Operator: Holt Logistics, LLC (86.2 metric tons); one general purpose cargo/container crane, FOREIGN TRADE ZONE 142 35 tons (31.8 metric tons) South Jersey Port Corporation, Grantee of Foreign Trade Zone Direct transfer: Direct to and from truck/rail/ No. 142, currently has three General Purpose sites and three vessel subzone operators. Site 1: Parcel A (85 acres) within the Port of Salem 2 miles Truck gates: Balzano Boulevard main gate & off the Delaware River Site. Parcel B (5 acres) also located 6 storage area gates within the Port of Salem, owned by the Salem Marine Terminal Highway access: Direct to I-676, I-76, US Rt.130 Corporation (SMTC) and I-295 Site 2: (10 acres) located within a proposed warehouse Rail connections: CSX, NS, and CP rail systems with complex on Walnut Street, owned and operated by Salem Warehouse Distribution Corporation, which is also part owner integrated on-dock rail of the SMTC site. infrastructure Site 3: (144 acres) at the Millville Municipal Airport Other features: Food grade warehousing; Industrial Park, located within the 916-acre Millville Municipal innovative direct discharge for Airport, some 25 miles southeast of Salem, operated by the bulk cargoes; custom cargo City of Millville. Subzone MFGO-142-00A: Paulsboro Refi ning Company, LLC. carriers for direct discharge Subzone MFGO-142-00B: Axeon Refi nery LLC. to storage; all-weather loading; Subzone MFGO-142-00D: Nine West Holdings, LLC. temperature control warehouse Annual Report 2015 - p19

BROADWAYBROADWAY MARINE TERMINAL BROADWAY PIER 5, continued Location: Broadway at Morgan Boulevard, Storage capacity: 3 temperature-controlled ware- Camden, New Jersey houses: 60,000 SF (5,574 sq. m.), Cargoes: Furnace slag, salt, other dry bulks, 75,000, SF (6,968 sq. m) and 53,400 SF steel products, wood products, (4,961 sq. m) minerals, cocoa beans 1 dry - 25,000 SF (2,322.6 sq. m.) Terminal area: 106 acres (42.8 ha.) Reefer plugs: 175 Berths: 2: 1,700 LF (518.16 m.) Direct transfer: Direct to truck/rail,LCL and FCL Depth at MLW: Pier 1 — 35 ft. (10.7 m.), handling Pier 2 — 40 ft. (12.2 m.) Truck gates: 2 Storage capacity: 36 dry warehouses providing 1.128 Loading docks: 40 million SF (102,600 sq. m.) Special features: 2,000 ft. of rail siding for intermodal Cranes: Multi-purpose electric — 95 tons COFC transfer (86.2 metric tons) Direct transfer: Direct to and from truck/rail/vessel SALEM MARINE TERMINAL Truck gates: 1 Location: Salem, New Jersey at Exit 1 of the Highway access: Direct to I-676, I-76, US Rt.130 & New Jersey Turnpike I-295 Lessee: National Docks LLC Rail connections: CSX, NS, and CP rail systems Specialized cargoes: Sand and gravel Other features: Bulk cargo storage area; marine- Other cargoes: Various dry bulk and project cargoes, related industrial park services wearing apparel, and motor vehicles Terminal area: 28 acres (11.33 ha.) Berths: 1: 350 LF (106.7 m.), 130 ft. sheathed BROADWAY PIER 5 (40 m.) Location: Broadway at Morgan Boulevard, Storage capacity: 60,000 SF of shed and warehouse Camden, New Jersey space (5,574 sq. m.) Special cargoes: Perishables Highway access: Direct access to Rt. 49, Rt. 45 with Terminal area: 28 acres (11.3 ha.) access to US 130, I-295 Berths: 1 berth: 1,135 LF (346 m.) and NJ Turnpike Depth at MLW: 35 ft. (10.7 m.) p20 - SOUTH JERSEY PORT CORPORATION Administrative Offi cers and Staff

EXECUTIVE DEPUTY TREASURER DIRECTOR & CEO EXECUTIVE DIRECTOR & CFO KEVIN CASTAGNOLA JAY JONES BRUNO N. CELLUCCI

Dan Aaron Vincent D’ Alessio Robert Jack Francesco Nestore George Aaron Vincent D’ Alessio Jr. Thomas Johnson Frank Nestore David Acevedo Ronald Daniels Pawel Kasprzak Jesse Newcomb Robert Albanese Michael Dehoff William Kelley Lien Nguyen Stephen Anderson Michael Deliberis Joseph Knecht Shawn Norman Michael Anderson Joseph Deluca Leonard Korte Joseph O’Leary Kevin ArArmstrong William Deluca III George Kuesel III Juan Pena Rasheemm Bailey Jeff rey Dick Herbert Lambert Antonio Pimpinella Robert Bak Louis Ditomaso Michael Lang Joseph Puglia Steven Bell Athina Efelis Walter Lauer Robert Purcell Eddie Bell Stephen Endres David Lenhart David Rivera Robert Bessing Christopher Engel Edward Loatman Thomas Rogers Michael Bosco George Englardt Edward Luedtke Kenneth Rossi John Bowyer Donell Farrish Louis Malatesta Ricky Santiago Anthony Boyizigies Bobby Farrish Panteleimon Mastalos Gary Schreyer Patrick Boyle Earl Farrish Joseph Mauer Stephen Scott Robert Britland Nicholas Fini, Jr. Rosemarie Mc Bride Richard Sewekow David Buff etta Paul Flanigan Christopher McCormick Carl Siegfried Joseph Burleigh Christopher Forjohn Roy McCormick,IV Russel Sockwell Carl Burt Raymond Gallagher David Mc Goldrick Mark Stang Manuel Cachu BrendaGill Sylvester McKenzie John Striewski Nicholas Capaldi Alvin Gindhart William Means Harry Trump Lawrence Casanova Oanh Glanz Douglas Miller Shawn Trump Albert Celeste Kevin Greenjack David Mitchell Robert VanFossen Rich Ciafullo III Robert Guth Juan Mojica Michael Vindick Anthony Colavita Patrick Haley Shaun Monk Brett Walker Urban Cooper Jesse Hamrick Joseph Monturano Robert Weyand Jr Kenneth Cosby Karol Hoff man Clifton Moragne Andrew Wojcik Kevin Costello Rose Hope Greg Mortimer Noe Yax-Santos Wieslaw Czajka Timothy Ingram Moses Mumford Annual Report 2015 SOUTH JERSEY PORT CORPORATION

EXECUTIVE ORDER #37 (2006) Certifi cation of Annual Audit for Year Ending 2015

WE ARE PLEASED TO PRESENT this report containing a record of the signifi cant actions taken by the Port Corporation in 2015; those actions detail the success the Port Corporation has achieved in growing its business on behalf of the State of New Jersey and its citizens during the year 2015. In addition, in accordance with Executive Order #37 (2006), we certify that, to the best of our knowledge, the information provided to the auditor in connection with this annual audit and contained in the attached report is accurate, and to the best of our knowledge, fairly represents the fi nancial condition of the South Jersey Port Corporation for the year ending December 31, 2015. The following senior staff members hereby certify that during the preceding year the Corporation has, to the best of our knowledge, followed all of the Corporation’s standards, procedures, and internal controls. Approval of this audit report has been made by the Board of Directors and an electronic version has been posted on the Corporation’s website, www.SouthJerseyPort.com.

Kevin Castagnola, CEO and Executive Director Bruno N. Cellucci, CPA, Treasurer / CFO

SOUTH JERSEY PORT CORPORATION 2015 FINANCIAL REPORT 101 Joseph A. Balzano Boulevard Camden, New Jersey 08103 www.southjerseyport.com 856-575-4903 * 856-575-4969 (f)